Key Findings & Highlights:

As clients have adopted digital transformation as a key IT focus area, the objectives of these programs have varied widely to include internal cost reduction, increased agility, and increased revenues. The objectives being sought drive different approaches under the digital transformation umbrella.

As offerings continue to evolve, so will the objectives being sought. NelsonHall expects an increasing focus on more indirect (but higher business value) benefits such as increased revenues and increased customer satisfaction.

The driver behind the increasing focus on digital transformation is the use of new and emerging digital technologies to completely transform the business, rather than digitizing existing business processes. This has initially taken the form of digital transformation, but over time will evolve to a complete re-imagination of the business.

In parallel, digital transformation is also expanding the scope of services expected from vendors. Clients are looking to a single vendor to act as digital transformation partner; from defining digital strategy to conducting design thinking sessions, to implementing and managing digital solutions. The ultimate transformation plan looks beyond technical changes to fundamentally alter business models and business processes, requiring increased business process and change management.